United States Steel Corporation · NYSE:X
United States Steel — Q2 2022 Earnings Presentation
19 slides from United States Steel's earnings presentation, Jul 29, 2022
Slide 1: Second Quarter 2022 Earnings Call
Second Quarter 2022 Earnings Call July 29, 2022 David Burritt President and Chief Executive Officer Christie Breves SVP and Chief Financial Officer Rich Fruehauf SVP, Chief Strategy and Sustainability Officer Kevin Lewis VP, Investor Relations and Corporate FP&A
Slide 2: Legal disclaimers
Legal disclaimers 2 2 These slides are being provided to assist readers in understanding the results of operations, financial condition and cash flows of United States Steel Corporation as of and for the second quarter 2022. Financial results as of and for the periods ended June 30, 2022 provided he
Slide 3: Explanation of use of non-GAAP measures
Explanation of use of non-GAAP measures 3 3 We present earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, consid
Slide 4: Advancing towards our Best for All future
Advancing towards our Best for All® future 4 4 CURRENT LANDSCAPE CHALLENGES SOLUTION PATH FORWARD Bullish on U. S. Steel’s future Delivering on Best for All Transitioning to a less capital- and carbon- intensive business model while becoming the best steel competitor Balanced capital allocation stra
Slide 5: Advancing towards our Best for All future
5 5 RECORD SECOND QUARTER PERFORMANCE DIFFERENTIATED STRATEGY BALANCED CAPITAL ALLOCATION FRAMEWORK Advancing towards our Best for All® future
Slide 6: Record second quarter performance
Advancing towards our Best for All future Record second quarter performance 6 2Q 2022 Adj. EBITDA ~$1.6B In the second quarter 2022:Over the past four quarters: ~$6.7 billion Adjusted EBITDA ~$4 billion Free Cash Flow ~$850 million Stockholder Returns
Slide 7: Differentiating ourselves vs. the competition
7 7 Advancing towards our Best for All future Differentiating ourselves vs. the competition STRUCTURALLY IMPROVED BUSINESS Improving our through-cycle resiliency UNIQUE METALLICS STRATEGY Expanding our lowest-cost iron ore advantage DECARBONIZING THE FOOTPRINT Executing on our 2030 and 2050 targets
Slide 8: Structurally improved business
8 8 Advancing towards our Best for All future Structurally improved business BIG RIVER STEEL ACQUISITION BALANCE SHEET STRENGTH DIVERSIFIED END MARKETS
Slide 9: Decarbonizing the footprint
1.85 2.31 2.38 2.30 1.93 9 9 Advancing towards our Best for All future Decarbonizing the footprint 2018 20202019 20302021 Metric tons CO2e/metric tons raw steel Scope 1 & 2 Global GHG Emissions Intensity1 Total Enterprise Targeting a 20% improvement by 2030 vs. a 2018 baseline 1 Reflects our interim
Slide 10: Unique metallics strategy
10 10 Advancing towards our Best for All future Unique metallics strategy Note: Subject to reaching a definitive agreement with SunCoke and other contingencies and approvals. 1 Assumes Big River Steel’s 3.3 million net tons at 90% utilization. 2 Assumes (a) Big River Steel’s 3.3 million net tons and
Slide 11: Balanced capital allocation approach
11 11 Advancing towards our Best for All future Balanced capital allocation approach PRIORITIES CONSIDERATIONS OBJECTIVES 1 Balance sheet strength Through-cycle adjusted debt to EBITDA range 3.0x – 3.5x range 2 Announced Best for All investments Cash to NTM1 capex and cash of no less than $1.5B 1:1
Slide 12: 2Q 2022 results
12 12 Advancing towards our Best for All future 2Q 2022 results In the second quarter 2022: Adjusted EBITDA ~$1.6B Supporting 26% enterprise EBITDA Returned to stockholders $413M ~17 million shares repurchased Free cash flow $642M Contributing to record cash and liquidity
Slide 13: Record second quarter performance, differentiated strategy, balanced capital allocation
13 13 Advancing towards our Best for All future RECORD SECOND QUARTER PERFORMANCE DIFFERENTIATED STRATEGY BALANCED CAPITAL ALLOCATION FRAMEWORK
Slide 14: Q&A
Q&A Non-grain oriented (NGO) electrical steel line construction
Slide 15: Closing Remarks
We Scored 100 On the 2022 D= =| DISABILITY” 7 EQUALITY Closing AG Remarks
Slide 16: Reconciliation of segment EBITDA
Flat-rolled ($ millions) 2Q 2022 Segment (loss) earnings before interest and income taxes $777 Depreciation 125 Flat-rolled Segment EBITDA $902 U. S. Steel Europe ($ millions) 2Q 2022 Segment (loss) earnings before interest and income taxes $280 Depreciation 22 U. S. Steel Europe Segment EBITDA $302
Slide 17: Reconciliation of adjusted EBITDA
Reconciliation of adjusted EBITDA 17 ($ millions) 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Last 12 Month Reported net earnings attributable to U. S. Steel $2,002 $1,069 $882 $978 $4,931 Income tax provision (benefit) 260 (54) 246 284 736 Net interest and other financial costs 80 130 (10) (8) 192 Reported ear
Slide 18: Reconciliation of free cash flow
Reconciliation of free cash flow 18 ($ millions) 2Q 2022 Cash provided by operating activities $905 Cash used in investing activity (250) Dividends paid (13) Free cash flow $642
Slide 19: Investor Relations
INVESTOR RELATIONS Kevin Lewis Vice President 412-433-6935 klewis@uss.com Eric Linn Director 412-433-2385 eplinn@uss.com www.ussteel.com @USS_Investors